Power Grid Corporation of India Ltd (PGCIL) envisages business opportunities to the tune of Rs.4 trillion (Rs.4 lakh crore) by 2030, in the domestic power transmission space.
Addressing an investor conference, K. Sreekant, CMD, PGCIL, said that the business opportunity size for PGCIL in the domestic market is around Rs.4 lakh crore, over the next 7-8 years.
Sreekant explained that while Rs.1,90,000 crore worth of investment is expected in the interstate transmission system (ISTS), another Rs.1,96,000 crore will be spent in the intrastate network of various states. Besides, cross-border interconnection projects will entail an outlay of around Rs.20,000 crore.
Over and above this investment, PGCIL also expects transmission opportunities to arise from green hydrogen generation projects for which power evacuation corresponding to some 125 GW of renewable energy will be needed.
Work in hand
PGCIL currently has worked on hand estimated at around Rs.50,000 crore, Sreekant explained. This includes Rs.11,500 crore from RTM (regulated tariff mechanism) projects and Rs.13,000 crore from TBCB (tariff-based competitive bidding) projects. Another Rs.25,500 crore is expected from RTM projects that have been allotted to PGCIL but for which investment approval (by the PGCIL board) is yet pending.
Incidentally, PGCIL has projected a capital expenditure of Rs.8,800 crore for FY24. The PGCIL CMD expressed confidence that this target will be surpassed. In FY23, PGCIL had an identical capex target against which the achievement was Rs.9,060 crore.
Also read: PGCIL Completes Acquisition Of Three Project SPVs For ISTS Schemes
Overseas development space
K. Sreekant observed that PGCIL would soon be entering the power transmission development space overseas. PGCIL has already received approval from the Kenyan government for developing a $250 million transmission scheme in the public-private partnership mode, in association with Kenya Electricity Transmission Company Ltd (KETRACO). This project will receive financial assistance from Africa50.
The featured photograph (source: PGCIL) is for representation only.